6th July 2012In this issue:
Industry developments this week
A row has broken out between Network Rail and the rail regulator over plans for a management bonus scheme that could see top executives get payouts totalling more than £14m. Financial Times
- Unions have denounced the plans, which allow for a £1.7m directors bonus scheme and annual payouts worth up to 60% of salary. The Guardian
- Three executives – Robin Gisby, Simon Kirby and Patrick Butcher – are named by the Evening Standard as recipients of “golden handcuff” payments of £300,000 from the scheme.
Keith Brown, transport minister, has again called for High Speed Two not to end at Manchester. The Herald
- The Scottish extension has been backed by Boris Johnson. The Herald
Taxpayers have been saddled with a £4.8bn debt from High Speed 1 so far, a report by a committee of MPs has said. BBC News
- Lessons must be learned for High Speed 2, the Financial Times reports MPs as saying.
Overcrowding on rush-hour trains in London and south-east England continues to worsen despite extra investment in railways, government figures show. BBC News
New rail services
Transport for London has promised to refurbish 104 suburban railway stations if the government agrees to give them responsibility for running some Southeastern and Greater Anglia services. Transport Briefing
The UK’s first modern trolleybus network will be built in Leeds after funding was announced by the DfT. Transport Briefing
Tyne and Wear Metro workers have accepted an improved pay deal, removing the threat of further strikes. BBC News
The drive to recruit front-line staff for Edinburgh Trams, not due to open until 2014, is under way. BBC News
South West Trains has defied RMT union strike threats and flatly refused to pay staff a separate Olympic bonus. Evening Standard
The chief executive of Centro, the passenger transport executive in the West Midlands, has called for train-tram investment. Rail.co
Trains on the Midland Main Line will be able to run at 125mph from December 2013. Transport Briefing
Finance, business and sharecheck
National Express has revealed that it is on the shortlist to operate a regional train business in Germany. The Times
- The Fitch credit ratings agency announced it had adjusted a National Express grade to BBB-, to reflect its leading position in some transport sectors and diversified earnings. Reuters
Stagecoach has announced a slight fall in full year profits falling 1.5% in the year to April to £202.5m, on revenues that increased by 8.4% to reach £2.59bn. Transport Briefing
- Stagecoach’s Brian Souter has told The Times he hopes his company’s Megabus operation in the US will mitigate slumping profits at East Midlands Trains and Virgin Trains.
- Stagecoach last month announced a final dividend to shareholders. Reuters